Poverty, backwardness . . . and ‘Arangkada’

“But as the erstwhile Jorge Bergoglio prepares to celebrate on Friday the second anniversary of his election, he will be keenly aware that a crunch is looming over the question of how to reconcile Catholic thinking on the family with the realities of how many believers live their lives in the early 21st century.” [Two years and counting: Pope's opponents play waiting game, Jean-Louis de la Vaissiere, AFP, 12th Mar 2015]

“‘What the synod confirmed is that there is now an open conflict within the Vatican over very serious questions,’ said Marco Politi, a Vatican expert who has recently published an essay entitled ‘Francis among the wolves’ . . . The pope himself is worried . . . Politi believes the historic decision of Benedict to retire rather than die in office -- and 78-year-old Francis's own hints he could do likewise -- have been game-changers inside the Holy See. This is a pontificate with a limited timeframe . . . That means opponents can watch the clock and tell themselves, ‘we only have to wait four, five years and it will be over.’”

“Francis has also encountered subtle opposition to his bid to reform the Curia, the Vatican bureaucracy that runs the Church worldwide. Publicly, resistance has been muted, but with long-established ways of doing things under threat, ‘changing mentalities is not so easy,’ says an inside source.”

“When he demands that servants of the Church live modestly, as he does, you do not see many bishops giving up their palaces.”

Poverty or backwardness? Which is our real enemy? The Catholic Church is a big part of our culture. And our efforts to fight poverty isn’t that different from the charity preached by the Church. Yet poverty like wealth, in the context of the region, is a function of economic development – i.e., it was how once impoverished nations became the Asian Tigers. Why are we then the regional laggard? Because we are the least developed – and where poverty is a given!

Because we value our hierarchical system and structure, we take its consequences for granted. And chances are, Juan de la Cruz won’t imagine a Philippines being a developed nation? Not surprisingly, we could be critical of our more advanced neighbors. Yet until we see evil in a feudal, oligarchic economy and embrace an egalitarian society, we will be no different from the opposition encountered by Francis in the Curia because of their long-established ways – changing mentalities is not so easy.

If bishops won’t give up their palaces, what are the chances of Juan de la Cruz seeing our feudal system being upended? In the meantime, we have taken as gospel truth that the way to address poverty is by alms-giving? And so President Aquino has been a no-show at Arangkada two years in a row? He has raised the budget for CCT, why bother with Arangkada? And who will be the next president, Binay?

Why ignore Arangkada? Because the administration sincerely believes they have succeeded in “kung walang ‘corrupt’ walang mahirap”? President Aquino as his sister points out doesn’t line his pocket. Yet has influence peddling stopped? And is Arangkada unwelcome because it would upset our culture of impunity and influence peddling?

And it explains why our power crisis is evergreen? But if we have to give credit where credit is due, indeed the campaign against corruption got the international community applauding. Yet as reality hits home, they continue to raise the imperative of reform. And that is where we as a people must truly get credit, our track record of non-delivery! And not surprisingly, poverty hasn’t gone away! 

“Politicians with feisty tongue and racy humor like Mayor Arsenio H. Lacson are a vanishing breed now . . . Lacson at Plaza Miranda could hold a big crowd for hours, including students who preferred to miss their classes. Lacson’s main targets were the squatters (now euphemistically called “informal settlers”) living near esteros, on riverbanks, uninhabited buildings and vacant public/private land in Intramuros. Lacson scolded and asked them NOT to vote for him. Local officials now view the squatter families as addition in politics, despite the filth and petty crimes attributed to them. Squatter ghettos enjoy the protection of most barangay officials.” [Oldies to replace the President (?), Atty. Romeo Pefianco, Manila Bulletin, 13th Mar 2015]

Over the recent past, we’ve had two presidents that were trained to be economists yet economic development continues to elude us. Because the challenge of nation building demands much more! Think leadership personified by Lee Kuan Yew, Mohamad Mahathir and even Deng Xiaoping. Nation building is more complex than private enterprise yet private enterprise – because there is no free lunch – continues to develop new thinking and new ways of enterprise development.

They swear by diversity in pursuing innovation and creativity and competitiveness because there is no one source of answers. But diversity does not equate to complexity. Simplicity is the best policy especially in the 21st century where speed is synonymous to success. And it demands even greater visionary leadership and strategic thinking, meaning the bias must be on the outcome not the activity.

On the other hand, both PHL and the Church are inward-looking and why Francis is invoking that catholic is universal, i.e., open and welcoming. And add the convolutions inherent in a hierarchical system and structure, we have two institutions stuck in a rut? But what is the old guard invoking, the truth? Why did the Church preach charity in the first place? That the truth is in the eyes of the downtrodden? Blessed are the poor in spirit for theirs is the kingdom of heaven – not in the “palaces” or the circles of bishops or in an oligarchic economy or in our exclusive schools, country clubs and gated communities.

Arangkada is our most credible attempt to finally crafting an industrialization program that would erect a truly robust platform for the economy, not one skewed to cater to a dozen vested interests. Is it a surprise foreign chambers are behind it? Because we Pinoys value a feudal not an egalitarian society? But then again, the reality of raw politics is that “the few” are the kingmakers, and if the most incorruptible presidency is unable to free itself from their clutches, it is not surprising that they would now be lining up to anoint the next king in Binay? If you cannot beat them join them!

If we had the Marcos dynasty and the Aquino dynasty, it's par for the course to be witnessing the next one? Who will demand that the next leadership must be committed to nation building not the personal or the party and friends or their hometown or the vested interests that funded the elections?

We like to see the glass as half full when we have yet to: (a) erect a platform that will support a (b) robust economic enterprise (c) designed for the pursuit of nation building. And what do we have? (a) The backs of 10 million OFWs that are (b) driving the economy but which (c) we take for granted yet (d) leaderships past and present would take credit for? If that is not a stark illustration of our backwardness, what is? 

“The Arangkada report tracks action on its detailed recommendations and releases an annual assessment . . . For 2014, the JFC’s overall assessment is that despite being Asia’s second fastest growing economy after China, the Philippines is still “growing too slow.” [“Growing too slow,” Ana Marie Pamintuan, SKETCHES, The Philippine Star, 13th Mar 2015]

“For a nation that’s trying to attract more foreign direct investment, the leader can use a bit more enthusiasm. Last week, President Aquino didn’t show up at the annual gathering of the Joint Foreign Chambers of the Philippines . . .”

And why do we even do those overseas roadshows when right at home we won’t engage the JFC that represent foreign investment? Are we fighting . . . poverty or backwardness?

We think we do . . .

We say we do care but then again, does it have to do with the ambivalence in our traits and values? “Four Arangkada Forums have already been held. It will definitely be a shame if we enter the fifth Arangkada forum and a large number of these recommendations, which have garnered the consensus of almost all the major business groups in the country, remain unimplemented.” [Boo Chanco, DEMAND AND SUPPLY, The Philippine Star, 11th Mar 2015]

“In Energy, maybe they can deliver after a long wait, the proper policies and procedures to guide our so-called market-based rate setting for electricity . . . Reforming the power industry will be a gigantic achievement if they can do it. The biggest oligarchs are in the business and their influence on government policy cannot be underestimated.” [Juan de la Cruz is in good company; and can he overcome the influence of oligarchy? “What the synod confirmed is that there is now an open conflict within the Vatican over very serious questions,” said Marco Politi, a Vatican expert who has recently published an essay entitled “Francis among the wolves.” [Two years and counting: Pope’s opponents play waiting game, Business World, 12th Mar 2015]

“There are many other things that could be done as outlined in Arangkada, the reform agenda the foreign chambers presented to P-Noy in 2010. I decided to skip this year’s Arangkada reiteration of their suggestions because it is a waste of time to hear them speaking to a choir of businessmen with similar frustrations. Nothing really moved from their original list.”

“Makati Business Club chairman Ramon “Boy Blue” del Rosario Jr spoke during that Arangkada conference last week and he tried very hard to hide the frustration of the business sector.”

And President Aquino was a no-show? Should we wonder why we Pinoys seem unable to turn a plan or a roadmap into reality? Is it the path of least resistance? In the private sector there is an execution bias because of the profit motive. One would not want to lose their shirt.

“Yesterday, I watched a video in the ABS-CBN website of ADB Vice President Stephen Groff being interviewed by ANC’s Coco Alcuaz. Stephen Groff stressed the strategic importance of manufacturing in the Philippines, and specifically the need for industry policy and planning.” [Bobby Batungbakal, Philippine Manufacturing Revisited, 13th Apr 2012]

“This reminds me of Dr. Norio Usui, ADB’s Senior Economist who started talking about the need for structural transformation for inclusive growth in our country . . . According to Dr. Usui, our slow economic development vis-a-vis our neighbors can be traced to lack of structural transformation, which is to say that we failed to shift labor to higher productivity sectors of the economy. And the sectors with the highest productivity are industry and manufacturing….much higher than services and agriculture.”

“The good news is both government and private sector are listening. Last year, the DTI re-organized to form the Industry Development and Trade Policy Group under Usec. Adrian Cristobal. After the1st Philippine Manufacturers and Producers Summit by the FPI, industry associations started working with the BOI to create industry roadmaps as reported in our previous posts.”

Sound good . . . but what is reality? “The steel sector is pushing for the amendment of the Iron and Steel Act (RA 7103) stressing the steel sector is one of the country’s basic strategic industries that can promote real inclusive growth even as the industry laments over government’s penchant to craft an incentive scheme for non-inclusive automotive sector.” [Steel sector laments non-inclusive industry development priorities, Manila Bulletin, 2nd Mar 2015]

“[T]he country’s strong demand for steel cannot survive by rehabilitating the mothballed NSC . . . What we’ve left to the private sector in 1995 was a state of the art steel plant, but it is not anymore to today’s standards. The steel sector has already its roadmap, but it is not enough. A roadmap is a continuing tool of where we are, where we want to be and how to get there. The steel industry roadmap showed that the Philippines is the lone country among five ASEAN countries — Malaysia, Indonesia, Vietnam, Thailand — with no domestic steel industry to speak of.”

Crafting an industrialization or development program presupposes visionary leadership and strategic thinking. Yet it must be simple in order to engender execution; and it must have an overarching goal to facilitate priority setting and focus. And once it is reduced into a plan or roadmap, execution is a must, meaning it must be made real.

For example, can we trace our inability to move forward with Arangkada to our falling into an “activity trap” (e.g., 30 or so roadmaps, among others?) and can’t articulate where the priorities lie? Why? Because we’ve not kept an eye on a predetermined outcome – i.e., “begin with the end in mind,” meaning the bias must be on the outcome not the activity.

Let’s take the car program: saving $17 billion on imports without figuring out the impact on the revenue side (i.e., predetermined outcome) may disappoint, especially when we're looking at a niche auto model. Niche means small scale and the multiplier effect is limited. Niche works in “self-actualizing” (i.e., it responds to rational, emotional, experiential needs) innovations – like an iPhone 6S – for which consumers will pay a hefty premium.

And if it is a simple auto model – with a low competitive barrier – Thailand can develop a competing entry. And given economies of scale – or the size of their auto industry – and well-developed ecosystem (including roads and ports, etc.), they will easily upend us. We need clarity of strategic intent, like: (a) a sharper overarching goal and definition for the manufacturing industry that will be the core of an industrialization program; (b) that will yield a far greater multiplier effect – via intermediate and support industries – and a marked incremental economic output or GDP; and (c) be sustainable because we have competitive advantage.

In sum, we need more than an opportunistic approach. Recall the OFW phenomenon. It was opportunistic and became the key driver of the economy yet it failed to lift us up – i.e., we’re the regional laggard because we're the least developed. “Opportunistic” is a.k.a. Pinoy abilidad? Yet we must recognize that this is the 21st century, the age of Big Data and analytics. The caveat? Those ahead of the curve employ “creativity” (i.e., connecting the dots) to temper pure quantitative analysis – e.g., Steve Jobs ignored a dig from Bill Gates that he wasn't truly a techy.

In the meantime, given the incentive we are dangling, car manufacturers despite the low anticipated volume (of 120,000 units versus Thailand and Indonesia’s million-unit range) are professing keenness. And that is why they want to understand the mechanics and details of our incentive. Will the incentive we offer in fact subsidize and cover their potential margin shortfalls? And for us, the question is: what level of incremental GDP will we gain?

Clearly an auto program must demonstrate that it can be a driver of our manufacturing industry because it will spawn intermediate and support industries, which is the challenge being raised by the steel sector. And what we as a people must demonstrate is that what we have long invoked as our strength or quality of resiliency is not in fact a manifestation of complacency – i.e., we are unable to act and overcome our underdevelopment.

In the private sector, leadership is key to success. And in nation-building it is as well as the Asian Tigers have demonstrated. Should leadership then be at the top of the national agenda instead of poverty, for example, being our biggest challenge? In business education they talk about design thinking which is founded on human empathy – i.e., solve people’s problems.

In other words, we can’t overcome poverty if we don’t solve the problem that is underlying poverty. And alms-giving does not equate to problem-solving especially in a feudalistic society where it perpetuates a hierarchal system and structure . . . and its consequent subservience.

Where do we sorely need leadership? Think Arangkada or reforming the power industry or the importance of manufacturing or the Industry Development and Trade Policy or the steel sector. Have we stepped up to the plate to address and solve our problems? And if we haven’t, should we expect underdevelopment and poverty to persist? No one promised us a rose garden . . . Do we even care?

When do we put a stop to things . . .?

“Our bad news for 2014 comes from our group of Powerhouse five [or major subsidiaries] . . . During the year, BNSF disappointed many of its customers. These shippers depend on us, and service failures can badly hurt their businesses.” [Warren E. Buffett, Chairman of the Board, Berkshire Hathaway Inc., 2014 Annual Report]

That’s a great example of empathy that innovative and creative and competitive enterprises demonstrate via their business conduct. A business is only as good as the products and services it provides – i.e., it must respond to a consumer’s problem or need.

Empathy generates wealth even for a Buffett who must deliver tons of it to satisfy investors that have placed their trust in him, but how do we learn from it? We have to put a stop somehow to density, smog, bad traffic and the eye sore around us, for example? What about we start with Greenbelt 1? Because Greenbelt is our showcase and the attraction we want foreigners to appreciate – thus bet on or invest in PHL. And those can’t be the features and attributes of a competitive product that is PHL. “It’s more fun in the Philippines” must be founded on the right products and services!

A Brit who is a Makati and Bacolod resident and seems to like the Philippines wrote to a local paper to say he can see smog from his 22nd floor condo in Salcedo. But we like to applaud Greenbelt despite the teeny-weeny greenspace by the chapel? Shouldn’t we raise our standards as a people? Try the basement parking in Serendra at Bonifacio (that we call) Global City. Global means world-class? Thankfully parking in Aura is the saving grace. But try driving between Makati Business District and BGC! These are enclaves of the privileged few – and should we then wonder why Metro Manila seems hopeless?

“BNSF is, by far, Berkshire’s most important non-insurance subsidiary and, to improve its performance, we will spend $6 billion on plant and equipment in 2015. That sum is nearly 50% more than any other railroad has spent in a single year and is a truly extraordinary amount, whether compared to revenues, earnings or depreciation charges. Though weather, which was particularly severe last year, will always cause railroads a variety of operating problems, our responsibility is to do whatever it takes to restore our service to industry-leading levels. That can’t be done overnight. The extensive work required to increase system capacity sometimes disrupts operations while it is underway. Recently, however, our outsized expenditures are beginning to show results. During the last three months, BNSF’s performance metrics have materially improved from last year’s figures.” [ibid.]

In the meantime, in PHL, we read: “‘For March, if demand is as projected, if supply is as projected, and if the forced outages of 631 megawatts is still the same, we’re going to be okay,’ Petilla said. However, if the forced outages go way above 631 megawatts, may be 1,000 megawatts, then we have a problem . . . [T]hey were also looking at possible ‘minor glitches’ in other plants, like whether the 100-megawatt Millennium power plant would be able to go online on time and whether the 300-watt unit of GN Power would be back on the grid.” [Petilla hopes no more power plant breakdowns occur, Alena Mae S. Flores, Manila Standard Today, 2nd Mar 2015]

“MRT-3: Only half of trains running,” Jarius Bondoc, GOTCHA, The Philippine Star, 2nd Mar 2015. “That’s why riders have been waiting longer hours at stations since Transport Sec. Joseph Abaya raised fares last Jan. 4. More trains are bound to conk out. For, Abaya keeps contracting his Liberal Party mates for the shoddy maintenance.”

“MRT-3 was serviced for 12 years . . . by Sumitomo. In Oct. 2012 Sec. Abaya, U-Sec. Jose Lotilla, and then-MRT-3 general manager Al S. Vitangcol suddenly terminated the Japanese firm. In lieu was hired two-month-old, undercapitalized PH Trams, in joint venture with long-time LRT-1 manpower servicer CB&T. Why the experienced latter needed a seemingly worthless partner to get into MRT-3 later became clear. PH Trams consisted of LP members, an uncle-in-law of Vitangcol and a high official of a government agency. In ten months PH Trams collected P517.5 million.”

That is our reality; and what are we being told? “Multi-decade 6% GDP growth seen,” Kristyn Nika M. Lazo, The Manila Times, 26th Feb 2015. “The Philippines may sustain its current pace of growth in gross domestic product (GDP) at more than 6 percent for several decades, and could even step it up to 8 percent this year if oil prices stay below $60 a barrel, the head of the Department of Trade and Industry (DTI) said.”

“Economic growth is forecast to be sustained at above 6 percent if the government aims at level playing fields for investors, continued reform and calibrated liberalization . . . If we liberalize, there is long-term growth and competitiveness for our industries.”

If and more ifs is not reality? How can we learn reality? First we must learn to take in news – good and bad. [See above re Buffett.] Then we must seek them out. For example, “Benchmarking Australia-Asean food, agriculture trade,” Roland T. Dy, Mapping the future, Philippine Daily Inquirer, 2nd Mar 2015. “Australia is . . . an important market with a population of 24 million and a high income per capita of US $65,000 – among the highest in the world . . . The country is one of the largest agri-trade partners of Asean . . . Who are the Asean winners and losers?”

“The Philippines is an insignificant player in the Australian market. This was also confirmed by a Davao exporter who visited Sydney supermarkets in October . . . Thailand, Singapore and Malaysia are the largest Australian suppliers . . . The Philippines has the smallest two-way trade among the Asean countries . . . [T]he Philippines faces an uphill climb in the Australian market. For a while, the country was too focused on penetrating the protected (non-tariff barrier) Australian banana industry. Other fresh and processed products were neglected.”

“Export is a strategic avenue to expand markets and, therefore, rural incomes and jobs. But export is not a “walk in the park” if competitiveness factors such as cost, scale, quality and supply reliability, are not addressed. Export is the game of businessmen and entrepreneurs. But the government can help open up markets and improve goods logistics. Local governments can help by being enablers, rather than rent-seekers.”

And there is the reality of agribusiness – or enterprises and undertakings – for that matter. “Agrarian reform in the Philippines has failed because it has never been tried,” Agrarian reform can work, Ernesto Ordoñez, Philippine Daily Inquirer, 3rd Mar 2015. “The solution is for the government to follow the law and provide the necessary support services. But realizing the government’s poor track record in this area, the private sector must now get involved.”

“Economies of scale, optimal technologies and market access must be promoted aggressively by the private sector. There is no contradiction between economies of scale and small farmer land ownership. What needs to be done is to organize small farmers and consolidate them into an integrated agribusiness enterprise with the necessary economies of scale in production, financing and marketing.”

What about the government, can it be less dysfunctional? Indeed we must talk public-private partnership as though it's a mantra . . . but what we see is what we get? Impunity can’t run amok or “kanya-kanya” will push us to the abyss? And so while we're developing 30 or 50 industry roadmaps are there forces undermining our ability to prioritize and focus? For example, “Steel sector laments non-inclusive industry development priorities,” Manila Bulletin, 2nd Mar 2015. “The steel sector has already its roadmap, but it is not enough. A roadmap is a continuing tool of where we are, where we want to be and how to get there . . . The steel industry roadmap showed that the Philippines is the lone country among five ASEAN countries . . . with no domestic steel industry to speak of.”

We want to help ourselves? Then we can’t succumb to painting a rosy picture when we can be are our own worst enemy? Nor should we keep using the crutch “if and more ifs” – it’s so lame! We have to start chipping away at feudalism and backwardness – if we can't make a dead-stop – to overcome regional laggard!

Poverty, that we all like to headline, is not the enemy that we keep fighting! Why do the Singaporeans not want to touch populism with a ten-foot pole? They are a First-World nation for a reason? Try cause and effect?

When do we put a stop to what is wrong – and focus on the right things? Rome wasn’t built in a day as Buffett acknowledged, but demonstrates his commitment to empathy by putting his money where his mouth is – beyond being holier-than-thou (like our concern for poverty?) he is pursuing more wealth, tons of it!

Vision, next level, empathy

Are those among the things we take for granted to keep the equilibrium in our informal, harmonious and pleasant culture? Why would we want to disturb the apple cart? We were having dinner with friends, who had lived most of their adult life in California but now call Alabang home, when I picked up those words. While my wife and I were the ones visiting the Philippines, all four of us would fall under the classification Fil-Ams. Which simply means our worldview is different from those of us who call PHL home, and no other.

Our friends have picked up the local lifestyle being members of the country club and signing up for another in Tagaytay. “The idea is Tagaytay is accessible and the goal is to visit once a week, play golf and pick up some fruit and vegetable on the way back. Of course, we must know when to drive out to minimize traffic en route. By and large we will keep our American way of life, meaning DIY (do-it-yourself.)”

I looked perplexed and my wife had to translate. “Remember I had lunch with friends last week and I saw a few ‘yayas’ but there were no kids around. The yayas were attending to my friends and they were seated at the next table, at the beck-and-call of their señoras, like valets.” And my wife added, “When we come to live here again, you will hire me a yaya cum valet.” That will be the day!

In a feudalistic society like ours, we don't need a vision because those who count are already living the dream? But a vision or to imagine a bright future is something that my Eastern European friends would not assume. We were in our dark ages – under our Soviet masters – and we learned to take things as they come, was how they would explain it. And I would recall the expression, “step-by-step.” “Foresight” was not top of mind, if it was even uttered.

When I first arrived they explained the situation they were in. First the good news: They had sales of $6 million which made them proud. But the bad news was they were giving away the store, they were not delivering profits. And so we discussed the challenge they had in front of them and, that is, to be a $100-million company. Long story short, they've blown past that milestone and have set their sights on something much bigger. Their mantra is to keep moving up to the next level.

How does that apply to PHL? We must view SMEs beyond a livelihood or family undertaking. The bias must be on “outcome” not “activity.” Every enterprise is an opportunity to be a contributing member of society; and once critical mass is attained, collectively they can supplant our feudal system – and even wean us from our reliance on OFW remittances. But that will not happen if they remain small scale. They must seek to scale up. We can’t be an oligarchic economy that is riding on the backs of 10 million OFWs in perpetuity if we truly mean that we want to be an inclusive economy – and feed the other half of Filipinos. Poverty has gotten worse? Surprise, surprise? What else do we expect given our reality? Willing the glass to be half full doesn’t make it so!

Of course their eyes popped when my Bulgarian friends heard $100 million. That means you are able to stand on your own two feet, was how I explained the significance. It's all about the ecosystem. Imagine that we will lay out tracks, sturdy tracks and long enough so that we can travel far. Then we shall put on one car then a few cars, and then some; and then we will extend the tracks so the cars will have enough tracks to traverse – and even run at faster clips. Imagine, think 360 degrees and visualize an ecosystem.

The image came to me again as we were driving along EDSA and caught in traffic; and my wife and I were watching the few jam-packed MRT cars while countless buses were clogging EDSA because of their stop-and-go routine. How do we move up to the next level? My wife asked: “Why don't they optimize the investment on the tracks and put more cars in order to take more passengers and reduce the number of buses?” The thought came from our recent experience while in Bangkok and where we moved around with ease like other foreigners we saw because of the efficient public transportation system.

But is it true that bus operators are an influential bloc? Why? What was the rationale of the investment on the MRT if the public transportation system hasn't truly improved? Shouldn't that be the metric of such an infrastructure project? 

Back to my Bulgarian friends on how they can stand on their own two feet. Wherever we will lay the “tracks,” we have to think empathy otherwise we will never figure out the right products to sell. As we develop more of the right products, our portfolio will expand. That is how we will put more cars on the tracks. It is not about what we think, it is about what the consumer's problem is, or her need. It is not inside-out, but outside-in. It's the simplest way to explain empathy. [I am writing this on the train as snow continued to make a mess of Manhattan after attending “The Big Rethink” conference sponsored by The Economist Magazine for the modern-day CMO or Chief Marketing Officer. And I was with two friends from Eastern Europe. The first session asked the question: What global trends are we not talking about, moderated by the Media Editor of the magazine with 3 Fortune 500-types in the panel. And I was waiting to hear about Steve Jobs, for example, but not only. And so I raised my hand to make the point. The CMO beyond being the exemplar of leadership and financial accountability is grounded in human empathy because that is the well from where product innovation comes from, so says Steve Jobs. What is my question? Do you agree or disagree?]

Our Fil-Am foursome finished dinner and as we stepped out of the restaurant we realized we were both parked some distance away. And it was not a pleasant sight – a sea of cars packed like sardines – in a restaurant row that's part of a development billed as the local version of Beverly Hills. And our friend sighed, “There’s no empathy behind the design of this development.”

Over dinner we were jumping between looking at the glass as half full and the absence of the desire to move up to the next level. The good news is Philippine business and industry have some of the smartest people. And that we have a select group of Ivy League-types that are leading local enterprises.

In our hierarchical system and structure, everyone expects them to occupy lofty positions in Philippine society – and why we send our kids to these institutions in the first place. And then the bad news: we got to talking about the couple of cases where such an assumption was off base (or was it misplaced trust?) to the detriment of their employers.

Yet even in the West there is “clubbiness” among such elite groups, and the reality is because innovation continues to move at warp speed, those who don't keep up are left behind. And in the Philippines where we lag in innovation, creativity and competitiveness, it won't be surprising if they aren't kept current as well. And why doctors have continuing education, for instance.

The moral of the story: Can we imagine having a vision for the Philippines? What about our enterprises not taking the Filipino consumer for granted, that is, if they want to be honed in innovation, creativity and competitiveness? Those are founded on empathy . . . Whatever progress we may have achieved as an economy, there is the attendant challenge to move up to the next level . . . And finally . . . impeccable credentials can't undo the fundamental given, that education doesn't end with a sheepskin.

“Complaining is our national pastime”

In Singapore recently, my Bulgarian friend (with his wife and 19-month old daughter, who could hold the attention of those around her with her limited vocabulary which she compensates with eye contact and hand gestures) and I had dinner with a Singaporean. She teaches math at the local university and is also an art critic, specializing in architecture. “I wrote about your hotel,” she exclaimed. The hotel has become my own favorite, “offering lofty sky gardens” [says their flyer] bordering the all-glass floor-to-ceiling windows-cum-wall running the length of the room on the 14th floor. The rooms are generously adorned with wood, including slender frames of cube-like figures randomly stacked against the glass treatment (but no monkeys to do acrobatic stunts.) And from the reception desk all the way to lounge on the 16th floor, I would be greeted by Pinoy staff members.

The Singaporean has a PhD in AI (Artificial Intelligence) but would ask if we could share ideas how the youth of Singapore could keep on with the progress that has defined their city-state. She has lived in Japan for 7 years and also in Argentina. “You know, complaining is our national pastime. We always talk about what’s not working in Singapore. By now you know that I am both left and right brain. And while we’re teaching Singaporeans about creativity, I think we still lag the world because our nation developed with us, the people, following the vision set by our leadership and the rules that came with it. And that’s my point in asking how our youth could keep on with this progress.”

And she would continue: “In the case of Japan, perhaps because the system works, they would not hone their creativity even in the electronics industry which they once dominated. They can pursue technology but they’re creativity-challenged as far as applications are concerned.” And so I would relate the story of Toshiba and Apple. Toshiba had developed the hard disk the size of a dollar coin but they never figured out an application.

Enter Steve Jobs: He was not thinking technology but human empathy. That music is the way to the soul and the Walkman was the best the device available, with its own limitations – perhaps up to a hundred songs. Yet the soul can represent something that is truly vast and can be fed lots of songs, say, a thousand songs. But then Toshiba would sell the ownership of the teeny-weeny hard disk to Apple. The rest as they say is history. But Jobs would also explain how simple creativity is: it is simply connecting the dots.

There was a rumor that Lee Kuan Yew has died. He has been in hospital since early February or for practically a month (as of this writing) and the latest news is he was in ICU being treated for pneumonia. And the nation seemed to be in the mood of dissecting his strengths and weaknesses, the biggest concern being “we don’t have a succession plan.” 

It appears, volunteered another Singaporean, the son who is the Prime Minister doesn’t have the charisma, the vision, the leadership and the managerial skills of the father. “When he is confronted with questions in the Parliament, he can’t articulate his position nor his responses to these questions and he falls back on the talking points re the Singapore GDP.” I had to smile to myself because I had just read about one of our economic managers in the Philippines waxing poetic about our ability to continue with an accelerated growth rate of even up to 8%. [Haven’t we predicted boom times for decades?] Because he would also fall back on the talking points re the Philippine GDP. For instance, while the government has approved a huge infrastructure budget, it has yet to translate it into an efficient execution process. And the same applies with the targets set for FDI yet we remain the laggard in accumulated FDIs.

The big difference with Lee Kuan Yew is during his time, as many Singaporeans would explain, he was able to articulate a vision for Singapore and the core values that Singaporeans had to embrace to attain that vision. And as importantly, he would spell out the “how” to get there. And that while Lee Kuan Yew muzzled the opposition, the opposition in the past would also shoot themselves in the foot. Singaporeans are smart enough and won't be swayed by populist talking points. And yet for many years that was what the opposition tried to do.

“And that is why we are concerned. To keep on with Singapore’s progress, we cannot resort to a populist character. For example, we know we have zero natural resources, even our water comes from Malaysia. We are a tiny piece of land and all we have is ourselves, people. Indeed we need foreign investors like they have been successfully attracted by our leadership. But the son can’t articulate how we shall raise our population to 6.5 million. Lee Kuan Yew in the past would very easily explain whatever targets or goals or even KPIs (key performance indicators) he set for Singapore.”

I asked a Singaporean colleague about the flag and he went to Google to capture the precise words and read: “First the colors. Red stands for universal brotherhood and equality of man. White symbolizes pervading and everlasting purity and virtue. The crescent moon represents a young nation on the ascendant, and the five stars depict Singapore's ideals of democracy, peace, progress, justice and equality.”

We were introduced to the Commander of the Singapore Guards, and in the Singapore Armed Forces they are considered the elites, and I realized I’m indeed a senior citizen. He looked like a PMA cadet, young, fit and trim. And he was introduced by his first name, not as a general or commander. We were in our business attire and he was in civvies, and could be mistaken for an athlete. And indeed he is and is passionate about football, and would break into a grin when he said he roots for Liverpool. And could rattle the names of players counting back years including stars from Central and Eastern Europe, where he knows we come from.

The Guards are in charge of the National Day Parade and 2015 is special, the 50th anniversary of Singapore. And the deputies made certain the Commander would meet us being one of the sponsors – and having traveled from a distant place. “I wish you’d come on the 9th of August for the parade itself,” he would add. We were comparing notes with my Bulgarian friends well aware that command officers in our own countries would look like the elders of this youthful Singaporean officer who personified “a young nation on the ascendant.”

There is not that much secret behind the success that is Singapore? First of all, they had a visionary leadership in Lee Kuan Yew. And the people, as they themselves profess, are smart enough not to be swayed by populist talking points. As importantly, they never sleep on their laurels. To complain is not unpatriotic, and in fact is their national pastime. Yet they are committed to the pursuit of their vision as a nation.

Is there a blemish in the record of Lee Kuan Yew? They would relate to the one time during a question time in the Parliament when Lee Kuan Yew was pointedly questioned about the preferential discount he received from a developer for the house in Bukit Timah. He did not explain it other than to say that he “got a discount but who has a problem with that,” and stormed out while belligerently tossing the pen in his hand. Of course, he was an autocratic leader.

I am writing this back in Connecticut and had read about Obama’s own challenges and can only conclude that indeed perfection is not of this world. Thus, there really is not that much secret about the success that is Singapore? But that can only be true if we Filipinos would: (a) look outward not inward; (b) seek to learn from others; (c) clarify our perspective; (d) distinguish our faith from our heart and from our thinking; (e) keep the fundamental givens; and (f) keep it simple?

And that means being committed to the pursuit of a vision as a nation, and not be swayed by populist talking points or sweet-talking economic managers? But first we need visionary leadership? And then as a people we need to toss “kanya-kanya”?

“Our inability to get our act together”

“EDSA People Power was not a revolution. It was a revelation of the Filipino’s better self, buried by our toxic dependence on foreign powers, our bahala-na and ningas-cogon mentality, as well as our inability to get our act together.” [Another EDSA (?), Fr. Rolando V. De la Rosa, OP, Manila Bulletin, 21st Feb 2015]

Is our “better self” still buried precisely because of our inability to get our act together? Or why despite EDSA People Power, we’re back to square one? For example, “Bayanko is a separate movement completely independent of the National Transformation Council.” [For people power to succeed, Carmen N. Pedrosa, FROM A DISTANCE, The Philippine Star, 22nd Feb 2015]

If my memory isn't failing me, I thought I first read about the National Transformation Council in the same column? But then again, didn't we first read that GK and Couples for Christ were partners? Is getting our act together a real challenge for Pinoys? Because it is the gut issue that wittingly or unwittingly we keep glossing over that at the end of the day we're neither here nor there? For instance, Party-list over traditional political parties or charity giving (e.g., GK, CSR, CCT, etc.) over economic development . . . and yet we still can't feed half of our people? And we're still at it with federalism over Imperial Manila and parliamentary over the presidential form of government?

Insanity is doing the same thing over and over again and expecting a different outcome, so says Einstein? And should we wonder why we have a toxic dependence on foreign powers or why we can’t even feed half of our people . . . when we have yet to learn to stand on our own two feet? Of course individually we’re proud! Why not given our “kanya-kanya” instincts? The common good be damned!

The evidence: “METROBANK RESEARCH PREDICTS FURTHER 6-7% RISE IN 2015,” Mayvelin U. Caraballo, The Manila Times, 22nd Feb 2015. “Remittances by overseas Filipino workers (OFW) will rise a further 6 to 7 percent this year and provide a major growth engine for the local economy against global headwinds, the research arm of Metropolitan Bank and Trust Co. said.”

“A steady inflow of such remittances is seen coming from the United States, where economic growth is expected to gain pace and make up for the slowdown in other developed economies which also employ Filipino workers, Metrobank Research said in its latest report.”

How else must a bank think? More precisely, how do we wean ourselves from OFW remittances? Indeed “there are times that try men's soul”?

“Strong govt-private sector ties in PH supply chain urged,” Rosalie C. Periabras, The Manila Times, 22nd Feb 2015. “The government and the private sector must now address the problems hounding the Philippine supply chain industry, an official of the Department of Transportation and Communications said.”

“Transportation and Communications Undersecretary Julianito Bucayan Jr. told delegates at the recently concluded 8th Ports and Shipping Conference in Manila that a sound and harmonious relationship between the government and the private sector is key if the Philippines aims to become a major player in global shipping and shipbuilding.”

“The Joint Foreign Chambers (JFC), a coalition of seven foreign business chambers, has joined the clamor for the swift enactment of amendments to the BOT Law in order to sustain investor confidence by institutionalizing the processes that have improved the Public-Private Partnership (PPP) program over the past four years.” [JFC calls for swift passage of BOT amendments, Bernie Magkilat, Manila Bulletin, 21st Feb 2015]

“We call on government to swiftly enact the amendments to the BOT Law that will institutionalize the PPP Center and its processes, which we believe will further strengthen our PPP framework and prevent hindrances to the implementation of critical public projects,” the JFC said.”

And Mindanao, of course, continues to hug the headlines: “Assuming that the ARMM is a failure, is it the law that needs drastic changes? Or, is it because the officials “elected” to occupy the ARMM high offices failed to faithfully execute their duties? Quite a number of them became extraordinarily rich by helping themselves to the ARMM budget as if it were their own personal fortune…” [Applying the lessons of history II,Former Senator Atty. Rene Espina, Manila Bulletin, 21st Feb 2015]

“There are two ways of thinking and of having faith . . .” [Pope Francis Slams 'Prejudiced Mentality' Of Believers Who Fearfully Cling To Religious Laws, David Gibson, Religion News Service, www.huffingtonpost.com, 15th Feb 2015]

Indeed our faith is strong but mustn’t forget that there is also thinking. Where does “bahala-na” come from? Is what we call faith in fact a reliance on our “heart” and leading with our heart is why we can’t get our act together? Because our hearts can’t be one and the same? “Kanya-kanya” comes from the heart? But community sense and the commitment to the common good comes from thinking?

I’m writing this while in “Las Casas Filipinas de Acuzar” (billed as a “heritage resort” – “Pride in the past; Hope for the future” – in Bagac, Bataan) where a brother-in-law hosted us and his siblings to an overnight stay. They’ve stayed with us (snowbirds) in Marriott facilities in Phuket, Bangkok and Phoenix and the brother-in-law wanted us to experience something Filipino . . . to be proud of.

We thoroughly enjoyed Las Casas and my wife and I relished walking around and feasting on the sights of old homes and of old Binondo and Escolta, complete with the esteros. (That's coming straight from our hearts.) The young guide who showed us around heard that I once worked at an office in Escolta and asked if I'd confirm the names of the establishments he enumerated. He knew what he was talking about.

As our group compared notes, one of the siblings said that the island resort that we visited a few years ago in Marinduque has turned into a strictly chartering business. The conclusion is it was unable to sustain itself as a regular resort. But the facility would compare to a Marriott and why the reference. And we went recalling the different places we’ve visited. And the ones we thought we liked the most were pretty accessible and easy to reach. And like all enterprises, sustainability is never guaranteed especially when competition offers better value. (That's where thinking comes in.) I mentioned that some of our European friends have gone to Boracay and their common comment is “getting there is an adventure.”

My wife explained how the Marriott vacation club (which was known before as the “time-share” concept) has learned from the past – and is thriving. She calls it the opposite of “kanya-kanya.” People buy ownership by weekly units. The business model (apart from the reality that Marriott is a trusted brand; they have countless locations around the world and thus benefit from economies of scale) simply is the enterprise does not carry the costs of the assets and maintenance as well which are passed on to the fractional owners. What is the hypothesis of the Marriott experiment? Owners aren’t fixated by acquisition cost when there is perceived value in convenience, flexibility, choices and high-end resorts – the metric that Marriott set to define and translate the idea into a tangible product.

The moral of the story: If individual enterprises find the challenge to succeed and thrive daunting, what more of a community or a nation – especially when “kanya-kanya” rules? There are two ways of thinking and of having faith, so says Francis.

Should the Church take on the challenge of educating Juan de la Cruz to toss “kanya-kanya”? To be inclusive and to take care of the poorest of the poor is Christian-like, but it does not mean dole-outs. Dole-outs precisely reinforce and perpetuate an oligarchic economy. Think of the few fighting and cornering the economy while championing CSR. Beyond the church, should the educational system help Juan de la Cruz to square the circle?

Our inability to get our act together given “kanya-kanya” adversely impacts vital facets of the Filipino life thus our failure to feed half of our people. Has it in fact buried our better self?